Business Innovators Radio - Interview with Corey Baker Retirement Specialist with KK&B Financial Services Discussing Using Insurance for Retirement

Episode Date: August 21, 2024

Corey is originally from the Chicago area and is a lifelong Cubs and Bears fan. He and his wife Julie have 2 daughters and an incredibly spoiled poodle. As a former minister of one of the fastest-growing churches in Florida, Corey has extensive experience connecting with people and assisting them to become the best versions of themselves in every area. In 2017, Corey and his family relocated to Lexington, Kentucky where he now has dedicated himself to helping families and individuals all across the Midwest thrive with their retirement, and with their money.Corey is also a best-selling author, accomplished motivational speaker and personal health and wellness coach. His life’s passion is working with people and is tenacious in his dedication to helping others win. In his spare time, Corey loves to travel all across the US pursuing his other life passion, which is bowling.Learn More: http://www.kkandb.com/Influential Entrepreneurs with Mike Saundershttps://businessinnovatorsradio.com/influential-entrepreneurs-with-mike-saunders/Source: https://businessinnovatorsradio.com/interview-with-corey-baker-retirement-specialist-with-kkb-financial-services-discussing-using-insurance-for-retirement

Welcome to influential entrepreneurs, bringing you interviews with elite business leaders and experts, sharing tips and strategies for elevating your business to the next level. Here's your host, Mike Saunders. Hello and welcome to this episode of Influential Entrepreneurs. This is Mike Saunders, the authority positioning coach. Today we have back with Corey Baker, who's a retirement specialist with KK&B financial services, and we'll be talking about using insurance for retirement. Corey, welcome back to the program.

Thank you, Mike. It's been great being on with you, the last couple of episodes that I was able to have some conversation with you. And I always enjoy talking with you. You know, we've said this before, but, you know, we go into this with this kind of understanding, okay, we've got this much time and the time goes by so fast. You know, it just before you know it, it's like, oh, man, we've been going for 20 minutes already, and it feels like we just started. So thanks for hosting this.

Thanks for creating a platform for people. to learn and to be educated and I'm excited for the conversation today. Yeah, I like your perspectives on things because I think when we think about retirement, because you're a retirement specialist, there's so many things that go into that. And then when we hear insurance or life insurance, all of a sudden red flag, it's like, I'm good to go or confusion. How in the world do you use insurance for retirement? So I'm excited to learn your perspectives on that.

So talk a little bit about how you start working with educating. your clients on using insurance for retirement. Well, you know, I've said this, you know, I think we've done, this is our third, third podcast we've done over the last several weeks. And I've said this every time. But I ask this question to everybody because I think it starts with this. So every topic that we've gone through, this question comes back to mine. And I think this question needs to be answered when having this discussion also.

And that is this money that you have. Is this a plan for living or is this a plan for dying? And there's so many people that are afraid. This is crazy. They are afraid to spend their own money. They're afraid to spend the money that they worked for their whole life because they want to make sure that they have something to leave behind. You know, passing on is a challenging thing, you know, or coming to grips with that. One of the things that I do is, you know, I'm an insurance, right?

So I do a lot of final expense coverages. You know, it was just on the phone earlier today with a lady who doesn't really have any insurance at all. And I hear this a lot. A lot of times people are open to final expense coverage after they just got back from a funeral. Yeah. I just, I had some childhood friends that passed away in a car accident several weeks ago and they passed away. They have two boys. They didn't have a will.

They didn't have any life insurance. They have a mortgage. There's a lot of things that they have now that people that they care about have to deal with. And I get it, right? I understand why people don't like to have these conversations because they're uncomfortable. Because we don't like to imagine a world that doesn't include us. That doesn't mean that you're a selfish jerk. It means you're a human being.

We don't like to imagine a world that exists without us. And so to start having these conversations that are uncomfortable, you know, we don't like it. And not to mention, you know, the world is a challenging place to live right now. I mean, inflation is through the roof. Groceries cost a lot more. Gas costs a lot more. Energy costs a lot more. And so it's easy.

It's like moms, you know, I think a lot of times, you know, when you go to a place for dinner, you sit down and everybody's sitting down eating and then the mom is nowhere to be found because she's up getting food for the kids and she's up cooking. she's up doing all these other things. And she is so busy taking care of everybody else that she has forgot to take care of herself. And then when that happens, then there's burnout that happens. And that's why, you know, on planes, when you go on planes, they tell you if in a case of emergency, these air masks are going to be deployed, put your own mask on first before assisting others.

And that sounds so contrary and weird. but if you can't breathe, you can then can't help your child or your love life. So yeah, that's a great perspective. You've got to take care of you. And we, you know, and again, I come from the church world. And so I get this because a lot of times it's like self last, self last. I put myself last. I put myself last.

I get that. I understand that that can be a detriment sometimes when you don't take care of yourself. Because here's the thing. At some point, you're going to need somebody else to take care of you. At some point, age is. going to win mother nature father time undefeated undefeated at some point you're going to need somebody to take care of you in some way there are some things that you're not there's going to come a time when you're not able to drive yourself places there's going to come a time when you're going

to need assistance getting into bed there's going to come a time when you pass away and people honor you and celebrate you okay i'm not trying to be morbid i'm not trying to be um in fact a lot of times when I send like cards in the mail to people after they've purchased final expense things, I send a funny card because I think so many times like, these are all taboo things because we don't understand it, but really death is a part of life. It just is. And it doesn't have to be scary. Now, I can understand how it can be scary if there's a lot of things that you don't have under control. And finances is one of them. There's a lot of things that we can't control. This is what we can. I can control what happens to my kids if I were to pass away and my wife were to pass away.

I have a lot of life insurance. I hope my wife is not listening to this, although she knows that I have a lot of life insurance. And so she's a lot of life insurance, right? Because I want to know, like, if something would have happened to me, I have debt. I have things that need to be paid for. And if I go, if I pass away, that debt doesn't disappear. It just gets transferred. If I don't have insurance, if I don't have life insurance to take care of my responsibilities, what are some of my responsibilities when I die? My final expenses, my debts, taking care of my kids, at least at this stage of my life, those are responsible. Those are my responsibilities. And it's crazy because I can still speak from the grave when it comes to those things.

I can still let my voice be heard. I can still flex a little bit of muscle, even if I'm not alive. and that has to do with how much insurance do I have? What kind of protection do I have in place? And again, it's not about me being in control. It's not about that. It's just about I want to know that I had some say in the things that matter most to me. And so the money that you have, you know, people are scared to spend it. If you got $500,000, I want to know. And this is the first thing that I want to have a conversation with with people. Of that $500,000, how much of that is a plan for you for living? How much of that is a plan for you for dying? Yeah. A lot of our conversations have been centered around annuities, and now we're talking about using insurance for retirement. What are some of the differences between life insurance and annuities? Right. So life insurance, so really, if you want to, the simplest way to break it down is this. Life insurance exists as a protection in case you die or when you die.

You know, there's different types of insurance. There's term policies that most people have. get them very cheap when you're younger and they go to a certain age, usually 65. But then there's whole life policies. It's like you're, you know, or there's universal life policies where you are kind of funding your own death, so to speak. That as, as the insurance policy is new in its infancy, it's covered more by insurance than by your cash. But over time, that cash starts to be built up and it starts to be more of a cash position than it is an insurance position. But the number that you're going for is still the same. It's just who's funding it. And so life insurance exists to be there when you die or protection in case dying before you wanted to, dying too soon.

Annuities exist mainly to help protect you in case you live too long. It's like the opposite of life insurance. A lot of times people, you know, if you run out of money, if you have all of your money into some brokerage account and you're withdrawing, you know, whatever your RMDs tell you to withdraw and it keeps going backwards, backwards, backwards, and then you get to nothing. Well, then you're in trouble. You know, a lot of times people don't have a plan. What happens if I need long-term care? What happens if I need nursing home facilities? What happens if, you know, my, you know, which I work in Medicare too. So, you know, a lot of times people just get the standard Medicare protection and they don't get additional benefits that cover them in case something, you know,

they were to need assisted living and all those different types of things. Like these are all conversations that need to be had. But I could tell you one specific person that I've had a conversation with. And this is what made me realize, oh, man, this is such a great thing. Now, this gentleman was of means, right? And I'll just tell you what he does, right? We've had this conversation and we met and we had the conversation of, okay, of this money that you have, how much of this is for you and your wife to live on? How much of this is, money that you want to leave behind, right? I think if you can answer both of those questions, then you're not scared to spend the money that is designated to be lived on by you. So there's

different types of annuities, right? The two main duties that I deal with are one, a fixed indexed annuity, and another one is a fixed annuity or a multi-year guaranteed annuity we call them miga, right? And that is, it's like a CB, right? You take, you take a, you take a, you take money and you tie it up for a certain number of years at a guaranteed interest rate. So, uh, rates change all the time. So I don't even want to give an example, but let's just say, let's just say it's five percent. We say, hey, we're going to give you the insurance company is going to enter into a contract with you and they're going to give you five percent over 10 years or whatever, and you know that you're going to get that money, that the, that the, that the principle is going to be protected. So let's

just, for example, sake, say that you want to leave a million dollars, right? and you have some means and you decide, okay, I'm going to take $500,000 and put it into a fixed, a multi-year guaranteed annuity, MiGa, and I'm going to figure out how much coverage is. Now, here's the deal, right? You can get universal life policies when you're in your 60s, when you're in your 70s. You're not going to find any term policies for that time, but you can still get life insurance. A lot of times people don't think that they can get life insurance when they're older, and you can't. There's different options available.

You can get some really great insurance, but it's not cheap, right? It's the days, when you're in your 60s and 70s, the days of $50 term policies are over, right? Who is going to insure it? Who is going to possibly give you a term? Because that's the thing. Like, there's these things called actuary tables, morbidity tables, where insurance companies, you know, they have a pretty good idea of. Now, this is all based on law of large numbers, right? I mean, there's going to be some different people that outlive this or come short of this.

But they know that most males are going to live to about age 85 and most females are going to live to about age 90. The likelihood of one of the two of the husband or wife living past 90s, well over 50%. Okay. So if you want to leave behind a million dollars and you have the means to take a five, $500,000 annuity and take the interest that that annuity produces, right? Let's just say it's 5%. That's $25,000. That $500,000 is going to produce $25,000 a year in income for you just in interest. You could take that $25,000 and use it as the premium to pay for that $500,000 policy, meaning that at the end you're going to have if something were to pass it if you were to pass away you would have a half a million dollars in in that annuity because remember we're just taking the interest we're not touching that that principle at all we're just living off of the interest you'll have that $500,000 annuity plus the $500 insurance policy that's a million dollars that you have now designated to living to living to living to whoever you want and by the way insurance life insurance

insurance is tax free. So that $500,000, there's options for the person, right? There's going to be some taxation. They have to withdraw it over a period of time or whatever. But whatever you leave behind in life insurance, tax free. So I've never heard of someone explain it that way of how to fund a life insurance policy with an annuity. That's pretty, pretty huge. And you're talking about, you know, tax free transfer of wealth. That gets into legacy. And, and that's like a whole other. level of planning. You know, we talk about, oh, have some life insurance so that if and when we die, we leave our family some means to, you know, pay for debts, final expense and live from

there. But then when you think past that, okay, yeah, all of that stuff needs to be done. But then I want my family to have the legacy that I've built up and I want them to have X number of dollars. And so now that's a whole other level of thinking, right? I mean, that's strong. Well, that's the thing. I mean, I work in the insurance industry, right?

But my real job, my real job is problem solver. That's what I do. I solve problems. In fact, anybody, you know, that's how you make a lot of money. You know, I don't even shy away from that where somebody says, you know, you're just in this for the money. Yeah. Yep, I am. And you know why?

Here's the thing. You get paid when you solve problems. If you solve bigger problems, you get bigger money. You exist. You get paid. Your business exists to solve problems. And you know what? I stopped. You know, we live in the age of social media and everybody's got a business on social media. I've got a business on social media. People, every single person is trying to sell you something. You know what? Here's one thing that made me stop getting offended when people trying to sell me something. You know who wants your money? Everybody. Everybody wants your money. The question is, what do you want your money to do? Like we have an aversion. Nobody likes being sold things, but we love buying. things. We love Amazon. We love the feeling that we get purchasing something that we want. And yet we take

offense when we feel like we're sold. I'm on phones all day long. And it's crazy to me because, you know, I get people that will respond to an ad or say they want information and then they get upset when I call them back. And I understand. Right. I understand because here's the thing, right? People are skeptical. and why shouldn't they be? I try to, I really try to operate from a position of empathy. And empathy says,

I'm going to approach this, looking at it from somebody else's perspective. If I look at it from my own perspective, I could get P-O'd all day long that people aren't answering the phone. And I could put myself in the victim mentality in a second by saying, they requested information,

they wanted to know, said they wanted to talk to somebody. They told me to call them back at this time. And I called them back at this time and they didn't answer. Okay. Their phones must ring off. They probably, the people that I'm talking to, they get calls nonstop. Because everybody wants your money, right? They get their phone rings off the hook and people want their money. And so for them, for people, it's tough to kind of remove yourself from the situation to say, okay, I want this. And this is, listen, we can say that like insurance, insurance isn't sexy. Insurance is not your Amazon. Nobody's buying a life insurance policy on Amazon.

This is not something that you can- And they're not posting on social media. Check out my new life insurance policy. No, yeah, hey, everybody. I got five spots left for a fixed index annuity for 600,000. dollars like nobody this is nobody gets excited yeah about buying insurance they should at least of the kind of insurance that my the type of insurance that we offer this is one of the only types that i know of that puts money in your pocket more than it takes it out of it right most most most most insurance policies are taking money out of your pocket in order to protect you against something else. We are trying to put more money into your pocket. That's the difference. We want more money in

this is about you gaining. This is not about anything being taken away. This is about you gaining. It's about helping us. The reason I have conversations with people is I can't fix the problem I don't know about. So I want to have a conversation. I want to figure out what's your problem. Is this a plan for living? Is this a plan for dying? That person that I spoke about before, we got, we, we we answered those questions. We put, we, we, we took care of his family and we took care of the income. And here's what's cool about that. If you can get those two questions answered, my living expenses for the rest of my life and my legacy play, well, then if there's money left over, then that, that, that allows you to play a little bit, right? You can, you can go, go, go invest in that

startup. Go put some money into that stock that you believe in. Go give a large sum or large donation to your favorite charity. Go travel a little bit. Go go do something. But here's the thing. If you, back to the investment thing, you know, nobody wants to lose. But, you know, I've used the casino illustration before. But if I, you know, if I know for a fact that my bills are paid and my flight home is paid for and my meal is paid and I lose some money, so be it. Right. I mean, I, I, I understand that there's a risk involved to it, but it doesn't own me. If you lose what you need to live on, it owns you. Because you cannot think of anything else.

We want to take care of your most important things that matter to you, living and taking care of yourself for the rest of your life and taking care of the people that matter most to you when you die. Whatever happens after that, that's your money. You can give it away. You can keep it. You can invest it. You can do what you want with it.

But let's figure out the things that matter most to you first. You know, Corey, I just love how you just lay everything out so smooth and clear where it's like, you know, a lot of people have misconceptions about this product, that product, annuity is life insurance. But in reality, if it's guaranteed income for life and you can't ever, ever lose money and in a properly structured contract with like life insurance, it's going to grow and cash value and you can even take some money out, all of these things are one purpose, taking care of your family, relieving your confusion and giving you peace of mind, knowing that you. you're going to have enough money for retirement. And using these two tools sure keeps that volatility that you see on the news and the TV and your portfolio statement when people feel like they got socked in the gut going, now what I'm going to do? I might outlive my money.

Well, if you're not losing money and it's protected and it's growing tax-free, all of these things that roll into, you know, this is something that someone should really take a close look at. So if someone is hearing some of these ideas and wants to get educated a little bit more and understand it for their situation, what's the best way that they can reach out and connect with you? Sure. Well, listen, I have, there's a lot of responsibilities that I take seriously in my life, right? I'm a husband.

I'm a dad. I'm a son. I'm a brother. I'm a friend. But when it comes to literally, aside from those things, the most important thing that I do and one of the most difficult things for people to do is to place their trust in somebody else when it comes to their money.

People personalize their money as they should. And so because of that, I understand, like when I sit down and have a conversation, you mentioned like what do people do if they want to sit down and have a conversation? I'll tell you. But first of all, when we walk into this conversation, you're probably going to have your fist held really, really tight

and you're going to be skeptical because you have no idea who I am and you don't know where I come from and you are going to put me into the same category as everybody else who's calling your phone who just wants your money. I'm going to walk into this conversation fully knowing that. My job is more than anything else just to sit down and have a conversation to help you to see what is possible. If you can see what's possible and you still decide that this isn't a good fit for you, then this is, this is probably not for you. In fact, there's been people that I've had conversations with that I've said, this probably isn't for you. Right. And I've, and I've had that conversation when I've, when I've told them, because they've walked into it. And I can remember one specific

person that walked into the situation and they were really, really skeptical. And they just talked about how they had some bad conversations and bad experiences of previous insurance agents that were just after their money. And we had a conversation and I just said, hey, I think you're, it's probably going to be best for you to keep your money where it's at. And he was like, well, that wasn't what I was expecting. And I said, well, so do you honestly think, like, if I was just in this for the commission, do you think I would have given you that advice? Yep. If I was just trying to make a commission, if I was just trying to make a sale, if I was just trying to close a deal, what I have told you to keep your money where it's at. No. So I just did it for the money. No, I guess not. That guy ended up

doing a deal a couple months later. Yeah. So here's the thing. What? Well, it's, And that's the thing. Like I want a person to have their eyes open to possibilities that they didn't know exist. So if you want to reach me, I'll give you my personal number. This is how I got offices and I have, I mainly work in Kentucky and Ohio and Indiana and Illinois. But I'll give you my personal number. It's 859-880-2164 where you can, you can email me at Corey, C-O-R-E-Y at K-K-N-B.com with the number I gave you, call me, you can text me. I'd love to have a conversation. Let's just talk.

Let's just talk and see what could be possible for you and let me help you come up with some solutions. Excellent. Well, Corey, as always, it's just such a pleasure here at your perspectives. Thank you so much for coming back on today. Thanks for having me. You've been listening to Influential Entrepreneurs with Mike Saunders. To learn more about the resources mentioned on today's show or listen to past episodes, visit www.com.com.com.com. EntrepreneursRadio.com.